SunSirs: Restructuring of Needs, Slight Increase in China Local Refined Naphtha Market

According to the Commodity Analysis System of SunSirs, as of December 26th, the mainstream ex factory price of domestic refined hydrogenated naphtha was 7,841.50 RMB/ton, an increase of 0.61% from December 18th at 7,794.00 RMB/ton. The actual transaction price of refined hydrogenated naphtha was around 7,800-8,000 RMB/ton.

As of December 26th, the mainstream ex factory price of domestically refined straight run naphtha was 7,779.00 RMB/ton, an increase of 0.52% from December 18th at 7,739.00 RMB/ton. The actual transaction price of domestically refined straight run naphtha was around 7,700-7,800 RMB/ton.

Recently, the overall market for refined naphtha has seen a slight increase, with terminal demand continuing to be weak. The main focus of essential procurement is on restructuring, and downstream demand is cautious in chasing higher prices, resulting in limited transactions.

Upstream: The international crude oil market has recently seen an overall rise. At present, there is still significant uncertainty in the situation in the Middle East, and the Red Sea shipping crisis may continue to disrupt the market in the short term; In addition, against the backdrop of the Federal Reserve's upcoming interest rate cut cycle, the weak US dollar has provided long-term positive support for the oil market.

Downstream: According to the monitoring of SunSirs, the price of toluene has slightly declined, and the domestic mixed blending market demand has entered the off-season. Downstream inquiries are light, and the demand for toluene mixed blending continues to weaken; The price of mixed xylene has slightly increased, and the cost center range of mixed xylene has fluctuated. Domestic port inventories continue to increase; The price trend of PX is temporarily stable, and the domestic PX operating rate remains above 80%. Downstream support for the naphtha market is generally weak.

Energy analysts from SunSirs believe that the international crude oil market is volatile, increasing the wait-and-see sentiment in the naphtha market; The domestic gasoline and diesel market has entered the off-season, and there is no significant positive effect on the terminal of refined naphtha; At present, there is a small amount of hard demand released for restructuring, but merchants are cautious in chasing higher prices. It is expected that the local refined naphtha market will mainly consolidate in the near future.

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